The illegal trading of tobacco has become more rampant, causing Vietnam’s state budget an annual loss of around VND4 trillion (USD190.47 million) in taxes.
The man caught for illegal trading of tobacco
This information was given by the Ministry of Industry and Trade’s Market Surveillance Agency.
It's the lure of big profits that makes this illegal activity very popular, the department said, adding that tobacco producers only earn a profit of some 3% of their total production costs, but the rate can climb as high as 300% for those who import the tobacco illegally.
Do Thanh Lam, Deputy Head of the Market Surveillance Agency, said the illegal trading of tobacco has increased from the north to the Southwestern region with the most popular brands being Esse, 555 and Hero.
The agency said, on average 500 million packs of cigarettes are illicitly transported to Vietnam from Cambodia every year. Illegal tobacco trading is an organised crime activity, which includes gangs, who are ready to use weapons against authorities.
Vu Van Cuong, Chairman of Member Council of the Vietnam National Tobacco Corporation, said control of tobacco consumption remains lax, fueling the illicit import of this product. Most retail tobacco shops sell Jet and Hero publicly.
According to the agency, in the first six months of this year, it revoked 553,000 tobacco packs, up 55% compared to the same period of last year. Recently, authorities seized 10,000 illegally-imported packs in Can Tho City.
The Vietnam Tobacco Association has proposed that the Ministry of Industry and Trade approve and implement soon a project to stop illicit tobacco business activities to protect local producers.
